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Johnson, Garamendi Lead Ocean Shipping Reform 2.0

March 28, 2023

The Ocean Shipping Reform Implementation Act gives the FMC the authority to protect U.S. ports, shippers, and manufacturers from the CCP’s influence

Washington, D.C. – Today, U.S. Representative Dusty Johnson (R-S.D.) introduced the bipartisan Ocean Shipping Reform Implementation Act with Rep. John Garamendi (D-CA) to build on the progress of their Ocean Shipping Reform Act that became law in June 2022. The Ocean Shipping Reform Implementation Act will crack down on the Chinese Communist Party’s attempts to influence America’s supply chain.

The bill prohibits U.S. ports from using Chinese state-sponsored LOGINK software, allows the FMC to investigate foreign shipping exchanges like the Shanghai Shipping Exchange to preempt improper business practices, and authorizes the FMC to streamline data standards for maritime freight logistics.

“We’ve seen the positive results of the Ocean Shipping Reform Act, but there is more to be done to stay tough on China,” said Johnson. “The Ocean Shipping Reform Implementation Act gives the FMC the authority to protect U.S. ports, shippers, and manufacturers from the CCP’s influence. Fair trade practices benefit all parts of the supply chain from producer to manufacturer, shipper to consumer.”

“Last June, Congress passed our landmark reform to the nation’s ocean shipping laws for the first time in nearly a quarter century to protect American businesses and consumers from price gouging by foreign-flagged ocean liners,” said Garamendi. “Congressman Johnson and I are committed to seeing that bipartisan 2022 law implemented fully to support American exporters and correct our nation’s longstanding trade imbalance with countries like China. After years of endless happy talk in Washington, we are finally making free trade fair trade and stopping Chinese state-controlled companies from ripping off our country and gutting our manufacturing jobs. Our implementation bill introduced today will finish the job.”

Watch Johnson’s line of questioning here or click the photo below.

“The Ocean Shipping Reform Implementation Act of 2023 confirms the purpose of OSRA to advance the interests of US agriculture exports, an objective the current FMC has embraced wholeheartedly. The new statutory language will guide the FMC in future years, as new Commissioners are appointed, and new staff are hired. It addresses emerging security and market control concerns relating to non-market economies with whom we trade and transport. It broadens the input provided to the Commission by the shipping public, to include freight forwarders and others, who arrange transport for many agriculture exporters,” said Peter Friedman, Executive Director of the Agriculture Transportation Coalition. “On behalf of our membership representing every agriculture and forest products commodity, in every state of the country, we thank Congressmen Johnson and Garamendi for your unwavering advocacy.”

“The Ocean Shipping Reform Act was a key step in the right direction to correcting an ocean shipping market that has for too long disadvantaged U.S. dairy exporters. USDEC thanks Representatives Johnson and Garamendi for introducing this follow-up legislation to ensure full implementation of OSRA that will hold ocean carriers accountable for their responsibilities to keep trade flowing. This bill gives the Federal Maritime Commission the full suite of tools necessary to return balance and certainty for American dairy exports,” said Krysta Harden, President and CEO of the U.S. Dairy Export Council.

"Consumer Brands is encouraged by bipartisan efforts in Congress to ensure the federal government is equipped with the policy and regulatory tools it needs to protect American shippers and ensure the seamless operation of U.S. supply chains. Stronger maritime shipping links are critical to consumers’ quality of life and the growth of the U.S economy, and we encourage the swift consideration of the new legislation being introduced by Reps. Johnson and Garamendi today to build upon and improve the critical polices included in the Ocean Shipping Reform Act,” said Tom Madrecki, Vice President, Supply Chain and Logistics, Consumer Brands Association.

“American dairy producers rely upon a consistent transportation network for their products to reach international customer. The legislation introduced today builds upon the important steps initiated in the Ocean Shipping Reform Act to correct an ocean shipping market that put U.S. dairy exporters at a steep disadvantage over the past three years. We look forward to working with Representatives Johnson and Garamendi to get this important bill through Congress and into law,” said Jim Mulhern, President and CEO of the National Milk Producers Federation.

“This legislation is essential for modernizing the U.S. freight sector and ensuring that U.S. supply chains are resilient and secure in the face of increasing geopolitical volatility. The bill establishes a critical pathway to developing a data-sharing standard amongst freight stakeholders, delivering efficiencies that reduce emissions and enabling more effective responses to supply chain disruptions,” said Christine Weydig, Executive Director, Coalition for Reimagined Mobility (ReMo).

The Ocean Shipping Reform Implementation Act is also supported by the Agriculture Transportation Coalition, National Milk Producers Federation, U.S. Dairy Export Council, National Customs Brokers and Forwarders Association of America, Coalition for Reimagined Mobility, Consumer Brands Association, and National Industrial Transportation League.

The Ocean Shipping Reform Implementation Act:

Tough on China

  • Establishes a formal process to report complaints against shipping exchanges like the Shanghai Shipping Exchange to the Federal Maritime Commission for investigation.
  • Bans U.S. port authorities from using the Chinese state-sponsored National Transportation Logistics Public Information Platform (LOGINK) and similar state-sponsored malware.
  • Directs the U.S. DOT to contract an independent auditor to examine the influence of the People’s Republic of China on the business practices of the Shanghai Shipping Exchange and report to Congress.
  • Codifies the definition of “controlled carrier” under the Shipping Act to encompass state-controlled enterprises in non-market economies like the People’s Republic of China.

Data Streamlining & Port Performance Statistics 

  • Authorizes the FMC to streamline data standards for maritime freight logistics and use existing data standards or industry best practices, including contracting an expert third party to develop the new federal data standard if needed.
  • Authorizes the Bureau of Transportation Statistics to collect more information on port operations, such as the total of incoming and outgoing containers and yard capacity.

OSRA Good Government 

  • Clarifies that Federal Maritime Commission may also stipulate additional minimum requirements for service contracts by ocean common carriers, at the agency’s discretion.
  • Updates and improves the purposes of the Shipping Act to better reflect current federal policy governing international ocean shipping and establishes reciprocal trade as part of Federal Maritime Commission’s mission in enforcing the Shipping Act.
  • Prohibits the Federal Maritime Commission from requiring ocean carriers to report information already reported to other federal agencies.

Read full bill text here.

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